Schaeffer's Trading Floor Blog

Analyst Downgrades: Yahoo! Inc., Broadcom Corporation, and Gogo Inc

Analysts downwardly revised their ratings on YHOO, BRCM, and GOGO

by 6/17/2014 9:36 AM
Stocks quoted in this article:

Analysts are weighing in today on Internet titan Yahoo! Inc. (NASDAQ:YHOO), semiconductor concern Broadcom Corporation (NASDAQ:BRCM), and in-flight connectivity provider Gogo Inc (NASDAQ:GOGO). Here's a quick roundup of today's bearish brokerage notes.

  • YHOO hit some technical turbulence yesterday, following lackluster revenue figures from Alibaba, of which YHOO owns a major stake. Subsequently, CRT dropped its price target on the equity to $41 from $45 last night, while Raymond James lowered its target by $3 to $40 this morning. From a broader technical standpoint, Yahoo! Inc. remains a long-term outperformer, with a year-over-year advance of 30% to trade at $34.58, yet about one-third of the stock's covering analysts maintain skeptical "hold" ratings. Should YHOO head back north in the near term, the shares may end up benefiting from a round of upgrades.

  • Although BRCM has gained 29.5% over the last month to perch at $38.32 -- and scored a two-year high of $38.85 yesterday -- Benchmark downgraded the stock to "hold" from "buy" this morning. Meanwhile, on the options front, short-term speculators are more call-biased than usual toward Broadcom Corporation, with call open interest outstripping put open interest by a more than 5-to-1 margin among options expiring within the next three months. This is evidenced by the equity's Schaeffer's put/call volume ratio (SOIR) of 0.38, which ranks in the bottom 7% of its 12-month range.

  • This morning, Macquarie initiated a "neutral" rating on GOGO, even though the stock has bounced 36% in the last month alone to trade at $18.47. Elsewhere, four brokerage firms maintain "strong buy" endorsements on Gogo Inc, while two have dished out "hold" or "strong sell" suggestions. Furthermore, the average 12-month price target stands at $22, representing expected upside of 17.3% from the shares' current price. On a fundamental note, GOGO will host its annual investor and analyst day tomorrow.

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